Debt when applying for a mortgage

[eirrah]

Hi. My partner and I are hoping to buy our first house in the new year 2019. We hope to have a 10% deposit saved (around £15k) and further fees on top etc.

The problem is that we are paying credit cards off now but when we come to applying for a mortgage, we will have around £3k debt on a credit card. This is less than £100 repayment per month but could this prevent a mortgage?

Or am I just being over worried?

Thanks :)

It won't prevent a mortgage but it will reduce the amount you can borrow.

What Titchy said. You would still get a mortgage but lenders get more and more cautious the mre debt you owe. Some are 'scared off' a bit by credit card debt as they view it as meaning that you have not been managing your finances well.

Personally I'd try to pay off the card debt as a priority if I were you (over saving for a deposit), even if it makes you have to wait a few more months to property hunt. It's well known that credit cards often have some appalling interest rates, and if you are only paying off minimum payments or thereabouts you are going to be wasting a lot of money in interest payments.

They will just deduct the monthly payment you need to put in to the debt away from your monthly income. A £3k debt won't make much of a dent.

Thank you. Minimum payment will be less than £100 a month which is totally manageable between my partner and I so I hope this doesn’t make a difference.

depending on wages and cost of property. 3k on 0% is nothing. as long as no missed payments you should be okay.